OpenAI Abandons For-Profit Conversion, Nonprofit Division Retains Control After Legal Pressure
Summary
OpenAI abandons its controversial for-profit conversion plan and keeps its nonprofit division in control after facing intense legal pressure from Elon Musk, state attorneys general, and Nobel laureates who opposed the restructuring.
Key Points
- OpenAI reverses its planned conversion to a for-profit company and announces its nonprofit division will retain control over business operations
- The company's business wing will transition to a public benefit corporation (PBC) with the nonprofit maintaining control and becoming a large shareholder
- The decision comes after legal challenges from Elon Musk, pressure from California and Delaware attorneys general, and opposition from Nobel laureates and civil society organizations